House Bill 0535
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Florida House of Representatives - 1999 HB 535
By Representative C. Green
1 A bill to be entitled
2 An act relating to to banking; amending s.
3 655.0385, F.S.; authorizing the Department of
4 Banking and Finance to exempt certain financial
5 institutions from certain notice requirements
6 under certain circumstances; authorizing the
7 department to adopt rules; amending s. 655.948,
8 F.S.; clarifying conditions under which the
9 department may exempt certain financial
10 institutions from certain notice requirements;
11 specifying continued application of such notice
12 requirements to certain financial institutions;
13 amending s. 658.26, F.S.; authorizing certain
14 financial institutions to establish branches
15 without being subject to certain requirements
16 under certain circumstances; providing an
17 effective date.
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19 Be It Enacted by the Legislature of the State of Florida:
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21 Section 1. Subsection (1) of section 655.0385, Florida
22 Statutes, is amended, and subsection (4) is added to said
23 section, to read:
24 655.0385 Disapproval of directors and executive
25 officers.--
26 (1) Each state financial institution shall notify the
27 department of the proposed appointment of any individual to
28 the board of directors or the employment of any individual as
29 an executive officer or equivalent position at least 60 30
30 days before such appointment or employment becomes effective,
31 if the state financial institution:
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Florida House of Representatives - 1999 HB 535
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1 (a) Has been chartered for less than 2 years;
2 (b) Has undergone a change in control or conversion
3 within the preceding 2 years, however, the department may
4 exempt from this paragraph any financial institution which
5 operates in a safe and sound manner in order to reduce the
6 regulatory burden on such institution;
7 (c) Is not in compliance with the minimum capital
8 requirements applicable to such financial institution; or
9 (d) Is otherwise operating in an unsafe and unsound
10 condition, as determined by the department, on the basis of
11 such financial institution's most recent report of condition
12 or report of examination.
13 (4) The department may adopt rules to implement this
14 section.
15 Section 2. Subsection (4) of section 655.948, Florida
16 Statutes, is amended to read:
17 655.948 Significant events; notice required.--
18 (4)(a) The department shall will exempt a financial
19 institution from any of the provisions of this section if the
20 department determines that such financial institution is
21 operating in a safe and sound manner in accordance with
22 department rules relating to safe and sound operations. The
23 department, prior to granting any such exemption, shall adopt
24 rules defining the term "safe and sound" and explicitly
25 stating the criteria which shall constitute operating in a
26 safe and sound manner.
27 (b) Notwithstanding paragraph (a) this section, all
28 newly chartered financial institutions and financial
29 institutions which have undergone a change in ownership which
30 is not the result of a merger, consolidation or acquisition by
31 a financial institution exempted in paragraph (a), shall be
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Florida House of Representatives - 1999 HB 535
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1 subject to the requirements of subsections (1) and (2) these
2 provisions for 3 years.
3 Section 3. Paragraph (c) of subsection (2) of section
4 658.26, Florida Statutes, is amended to read:
5 658.26 Places of transacting business; branches;
6 facilities.--
7 (2)
8 (c) As provided by rule of the department, a financial
9 institution operating in a safe and sound manner may establish
10 a branch by filing a written notice with the department at
11 least 30 days prior to opening such branch. In such case, the
12 financial institution shall not be required to file a branch
13 application nor pay a branch application fee A branch
14 application, filed by a strong, well-managed state bank or
15 trust company, which is not denied within 10 working days
16 after receipt of the application shall be deemed approved
17 unless the department notifies the financial institution in
18 writing that the application was not complete.
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20 For the purposes of this section, a strong, well-managed state
21 bank or trust company is an institution that has been in
22 operation for at least 24 months, is well capitalized, has
23 received a satisfactory rating at the institution's most
24 recent state or federal safety and soundness examination, and
25 is not the object of any enforcement action.
26 Section 4. This act shall take effect July 1, 1999.
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Florida House of Representatives - 1999 HB 535
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2 HOUSE SUMMARY
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Exempts financial institutions which operate in a safe
4 and sound manner from specified notice requirements and
authorizes such institutions to establish branches
5 without being required to file a branch application and
pay an application fee. Provides for the Department of
6 Banking and Finance to adopt rules relating to safe and
sound operations of financial institutions.
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